The Future of Corporate Communications - Top Takeaways from Edelman’s Latest Study

In today's fast-paced world, getting caught up in the pursuit of speed is easy. However, the most important factor is direction. Even if we're travelling at lightning speed, it won't matter if we're headed in the wrong direction. But amidst all the chaos, it's essential to take a step back and reflect on where we're heading.

Edelman's Future of Corporate Communications study serves as a valuable compass for navigating these complexities in the ever-evolving landscape communications landscape. The ongoing geopolitical, societal, and environmental pressures on business, and the continued calls for employers to lead in the face of eroding institutional trust, have placed communications at the centre of strategic decision-making for the world’s leading enterprises.

One of the report's most significant contributions is the establishment of a shared vocabulary, having a common language is crucial for effective communication and collaboration. By providing a clear framework, the study helps to bridge the gap between different perspectives and foster a deeper understanding of the evolving communications landscape across sectors.

I found the report to be a thought-provoking and insightful read. It validated my observations and provided a much-needed sense of direction. Some of the key takeaways that resonated with me include:

1. The Power Shift: Communications Leaders at the Helm

Communications leaders are becoming key strategic partners in companies, not just managing messaging but helping shape major business decisions. CEOs are leaning on them more than ever—77% of communications leaders say their CEO expects more from them today than a year ago, and 66% say their advice now covers issues like supply chain and employee matters, not just communications.

They’re often the first call in a crisis and spend nearly 20% of their time advising their CEO on non-comms issues—basically a full day a week. To keep up, they need to be proactive: offering regular updates to the board, bringing data-driven insights, and staying involved in key decisions. Nearly everyone in the C-suite now sees communications as essential, with 99% saying it strengthens connections across the company and 95% calling it an indispensable partnership.

2. Ever-expanding role of Corporate Communications Leaders

Communications leaders today are juggling more than ever. They're safeguarding the company's reputation, and navigating complex areas like ESG, AI, and innovation, all while keeping the company on track. In this role, they switch between being an advisor, confidant, and practitioner, often straddling multiple functions within the company.

According to the report, communications leaders are working closely with:

- CEOs (70%)

- Legal/General Counsel (51%)

- HR (33%)

- Investor Relations and Marketing (22% each)

CEOs, now under more pressure to publicly address societal issues, are turning to their communications teams for guidance. The key to staying ahead of these challenges? Knowing your company’s values inside and out, planning for worst-case scenarios, and setting up processes to figure out which issues you’ll engage with and how. It’s also about being in tune with decisions across the company that could impact reputation, such as a non-inclusive job description turning into a media headline. Building strong relationships across departments and regularly sensing potential issues is crucial to staying ahead of the curve.

3. The Resource Gap in Communications

Communications teams are under more pressure than ever due to global uncertainties, but funding hasn’t kept up. Nearly 44% of leaders believe their CEOs don’t understand the resources needed for effective communications. The challenge of linking activities to business outcomes contributes to inconsistent funding, with 26% of leaders fearing budget cuts compared to other departments. Additionally, 73% expect their communications budgets to change in the next 6-12 months. In short, while demands on communications are growing, financial support is lagging.

4. Measuring Communications and Tracking ROI

Gone are the days when communications success was measured just by media impressions and sentiment. Today, proving the ROI of communications is a complex but crucial task. As the stakeholder landscape and business demands evolve, communications leaders need to take charge of demonstrating their function's measurable value. By defining clear benchmarks and targets, they can align themselves with other departments that are accustomed to rigorous performance metrics. When making a case for additional resources or hires, it’s essential to focus on the added value rather than just the convenience. The goal should be to show how the investment will boost performance and contribute to overall company goals, not just how it will make your job easier.

5. Reputation begins inside:

In today’s world, employees play a crucial role in shaping a company’s reputation. They are closest to the value creation process, often advocate for the company, and are the first to highlight issues. Their experiences and opinions can influence consumers, media, regulators, and the public. With five generations working together—spanning the pre-digital era to today’s fast-paced digital environment—there’s a wide range of expectations and values about work. Each generation brings unique perspectives and access to information that can drive business change.

As a result, the focus of communications has shifted. What was once largely external is now 75% internal. The idea is simple: if you care for your employees, they will, in turn, take care of customers, which ultimately benefits shareholders. With growing pressures from stakeholders, C-suites and boards are increasingly using corporate purpose as a guiding principle for strategy and communications. Communications leaders are now tasked with leading efforts to ensure the company genuinely embodies its purpose.

Understanding these dynamics, including the impact of different generations and the rise of Gen Z, helps communications leaders set clear boundaries on which socio-economic issues the company will engage with. Employees have transformed the stakeholder landscape, shifting the focus from outside-in to inside-out. Communications teams are now expected to reinforce company values, integrate them into workplace culture, and amplify employee voices and influence.

Closing thoughts:

I believe that the COVID-19 pandemic has sharply highlighted the indispensable role of effective communication, balancing human connection with technological reach. Now, communication has earned its rightful place at the strategic table, with heightened responsibilities.

This report provides crucial insights, showcasing how strategic corporate communications can be a game-changer for organizations across various sectors. For corporate communications leaders, mastering a diverse set of soft skills is essential—everything from a deep understanding of the industry to being consistently vigilant. As the definitive source of truth within the organization, we're expected to have a comprehensive, 360-degree view.

Delivering on these expectations not only strengthens our position but also amplifies our impact, ensuring that communication remains a powerful, strategic asset in the age of multi-stakeholder capitalism.

Read the report: https://www.edelman.com/2023-future-of-corporate-comms#download

That’s all for today! See you next week as we explore more insights into communication.

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